The Following Items Are Reported on a Company's Balance Sheet

Essay

The following items are reported on a company's balance sheet:? $$\begin{array} { l r } \text { Cash } & \$ 400,000 \\\text { Marketable securities } & 50,000 \\\text { Accounts receivable } & 150,000 \\\text { Inventory } & 200,000 \\\text { Accounts payable } & 250,000\end{array}$$ Determine the (a) current ratio, and (b) quick ratio. Round your answers to one decimal place.